401(k) Specialist Issue 1 - 2021 - 22
401(k) REGULATION
Private Equity Menu Options
Controversy has swirled for some time over
allowing private equity investment options
in 401(k)-plan menus. Proponents argue it
provides the potential for much-needed yield,
while opponents object that private equity's
complicated nature could expose participants
to undue and misunderstood risk with the
potential for abuse.
Count Rutledge in the former, and an
information letter released by the DOL in
June 2020 (after his departure) appeared to
open the door to private equity's qualified
plan use.
" Retirement security is what ERISA is
all about, " he said. " Interest rates have been
low for over a decade, and long-term, low
interest rates pose a profoundly serious
threat to retirement security. In my view,
the policymakers must do something to
help 401(k) plans find higher returns. "
Private equity has the potential to be
part of that solution if, in the context of a
401(k) plan, the relative lack of liquidity,
longer investment horizons, and the need
for transparent asset valuations can be
accounted for.
" The DOL letter responsibly tackled all
of these challenges and provided a beneficial
roadmap for utilizing private equity
in 401(k) plans in a prudent manner, " he
continued. " Beyond private equity, employers
need as many options as possible, not
fewer options, to help their 401(k) plans
earn higher returns for their workers. "
The Fiduciary Rule
When asked about the fiduciary rule and
its many (many) iterations, he was mercifully
brief.
" The fiduciary rule was published last
July with the historic five-part test. The
fiduciary exemption was finalized but not
published in the Federal Register before
the new administration took office. I expect
the Biden administration will decide
to begin a new 'notice and comment'
regulatory effort. "
Positive Outlook
Rutledge was amiable and easy-going
throughout the discussion, and true to
form, he ended on a positive note.
" As of yet, we don't know who will be
nominated as the next assistant secretary
of EBSA, but we know the new principal
deputy assistant secretary is a man
named Ali Khawar. I know him well; he's
a great choice. He's a former career EBSA
attorney who knows the agency inside and
out in both the regional and the national
offices. "
Khawar, along with two extremely competent
career deputy assistants, means EBSA
has " an incredibly talented trio at the top, "
something he believes bodes very well for
EBSA under the new administration.
" I will also say that I envy the next
assistant secretary in having a team like that
with whom to work. "
20
ISSUE 1 2021 | 401kSpecialist.com
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401(k) Specialist Issue 1 - 2021
Table of Contents for the Digital Edition of 401(k) Specialist Issue 1 - 2021
Table of Contents
401(k) Specialist Issue 1 - 2021 - Cover1
401(k) Specialist Issue 1 - 2021 - Table of Contents
401(k) Specialist Issue 1 - 2021 - 1
401(k) Specialist Issue 1 - 2021 - 2
401(k) Specialist Issue 1 - 2021 - 3
401(k) Specialist Issue 1 - 2021 - 4
401(k) Specialist Issue 1 - 2021 - 5
401(k) Specialist Issue 1 - 2021 - 6
401(k) Specialist Issue 1 - 2021 - 7
401(k) Specialist Issue 1 - 2021 - 8
401(k) Specialist Issue 1 - 2021 - 9
401(k) Specialist Issue 1 - 2021 - 10
401(k) Specialist Issue 1 - 2021 - 11
401(k) Specialist Issue 1 - 2021 - 12
401(k) Specialist Issue 1 - 2021 - 13
401(k) Specialist Issue 1 - 2021 - 14
401(k) Specialist Issue 1 - 2021 - 15
401(k) Specialist Issue 1 - 2021 - 16
401(k) Specialist Issue 1 - 2021 - 17
401(k) Specialist Issue 1 - 2021 - 18
401(k) Specialist Issue 1 - 2021 - 19
401(k) Specialist Issue 1 - 2021 - 20
401(k) Specialist Issue 1 - 2021 - 21
401(k) Specialist Issue 1 - 2021 - 22
401(k) Specialist Issue 1 - 2021 - 23
401(k) Specialist Issue 1 - 2021 - 24
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401(k) Specialist Issue 1 - 2021 - 29
401(k) Specialist Issue 1 - 2021 - 30
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401(k) Specialist Issue 1 - 2021 - 37
401(k) Specialist Issue 1 - 2021 - 38
401(k) Specialist Issue 1 - 2021 - 39
401(k) Specialist Issue 1 - 2021 - 40
401(k) Specialist Issue 1 - 2021 - 41
401(k) Specialist Issue 1 - 2021 - 42
401(k) Specialist Issue 1 - 2021 - 43
401(k) Specialist Issue 1 - 2021 - 44
401(k) Specialist Issue 1 - 2021 - 45
401(k) Specialist Issue 1 - 2021 - 46
401(k) Specialist Issue 1 - 2021 - Cover3
401(k) Specialist Issue 1 - 2021 - Cover4
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